Assume that Jill is engaged in painting as a hobby. During the​ year, she earns

Assume that Jill is engaged in painting as a hobby. During the​ year, she earns $1,000 from sales of her paintings and incurs $1,300 expenses for supplies and lessons. Jill''s salary from her job is $ 70 comma 000$70,000. Requirement What is the tax treatment of the hobby income and​ expenses? A. The $1,000 income from the hobby is included in Jill​'s gross​ income, and $1,000 in expenses are deductible as miscellaneous itemized deductions subject to the​ 2% of AGI limit. B. A hobby loss of $300 will be reported and can be used to offset JillJill​'s salary. C. The $1,000 income from the hobby is included in Jill​'s gross​ income, offset by the allowable hobby expenses of $1,000​, leaving no profit or loss. D. The $1,000 income from the hobby is included in Jill​'s gross​ income, and $1,300 in expenses are deductible as an itemized deduction subject to the​ 2% of AGI limit.